Redundancy payment and P45

noelphobic

I don't understand why redundancy payments, and the tax deducted from them, don't show on your P45. I've asked this question before but not really understood the answer, so apologies to anyone who has answered previously.

I left my job at the end of June. I have received a P45 showing the 3 months salary earned in this tax year and the amount of tax that was deducted. After I left I was sent a separate 'payslip' showing the redundancy I had been paid and the (sizeable) amount of tax that had been deducted.

I know that at some point it is likely that I will be able to reclaim some of the tax I paid. However, I don't understand what will happen if I start a new job before the end of this tax year. If I give them my P45 then they will base the amount of income tax they take from me on the information in that, which will be incorrect when the redundancy payment is taken into account.

Also, if I don't get a new job before the new tax year and want to claim a tax rebate directly from HMRC then presumably I will need to provide both the P45 and the redundancy 'payslip'?

Thanks in advance for any advice.

jem16

noelphobic wrote: »

I left my job at the end of June. I have received a P45 showing the 3 months salary earned in this tax year and the amount of tax that was deducted. After I left I was sent a separate 'payslip' showing the redundancy I had been paid and the (sizeable) amount of tax that had been deducted.

If the Redundancy pay was paid after the P45 had been issued, they are not allowed to reissue the P45. If both had been paid together or Redundancy pay paid before P45 then it would have been shown.

I know that at some point it is likely that I will be able to reclaim some of the tax I paid. However, I don't understand what will happen if I start a new job before the end of this tax year. If I give them my P45 then they will base the amount of income tax they take from me on the information in that, which will be incorrect when the redundancy payment is taken into account.

Nothing much you can do about that I'm afraid.

Also, if I don't get a new job before the new tax year and want to claim a tax rebate directly from HMRC then presumably I will need to provide both the P45 and the redundancy 'payslip'?

Thanks in advance for any advice.

Yes you would.

[Deleted User]

Redundancy pay is non taxable so would not be included in taxable pay figures.
Are you sure the seperate payment is redundancy pay? Or is this a supplementary leavers payment for something that was missed off your final pay that has been subjected to BR tax at 20%?

noelphobic

Deleted_User wrote: »

Redundancy pay is non taxable so would not be included in taxable pay figures.
Are you sure the seperate payment is redundancy pay? Or is this a supplementary leavers payment for something that was missed off your final pay that has been subjected to BR tax at 20%?

Amounts over 30k are taxable and the separate payment was a redundancy payment.